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Marketing environment is made up of: INTERNAL ­ staff, technology, finance MICRO ­ customers, agents, suppliers, distributors MACRO ­ - Political e.g. laws, regulations, consumer spending power - Economic e.g. long and short term conditions of the market - Sociocultural e.g. ethics and social responsibility - Technological ­ vital for competitive advantage and a cause of globalisation…read more

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MACROECONOMICS Concerned with: - Total level of spending/demand in the economy - Levels of employment and unemployment - Investment made by business and government - General level of prices - Rate of interest and exchange rates…read more

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Level of activity in an economy is measured by the value of gross domestic product Income method ­ total of all income earned in the economy Output method ­ total value of all the goods and services produced in the economy Expenditure method ­ total value spent by consumers, business and government. ECONOMIC GROWTH IS AN IMPORTANT MEASURE BECAUSE: - Economic growth is about an increase in productivity within the economy - Our living standards are influenced by our access to goods and services - Without growth, individuals will only experience a groth in living standards at the expense of otehrs - With economic growth we can all potentially be better off…read more

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The Business CycleSome businesses are known as 'cyclical' because demand for their products fluctuate and this makes them more vulnerable to changes in the business cycle and GDP Features of the business cycles stages: BOOM RECESSION SLUMP RECOVERY Inflation increases Demand low High unemployment Increased consumer spending Some firms are Investments fall due Increasing number of Investing increasesunable to satisfy to lack of confidence bankruptcies due to confidence indemand in market the market Interest rates rise Profits fall Low levels of Production rising to spending meet demand The extent to which a business is affected by the business cycle depends on the income elasticity of demand for its products e.g. fashion retailers, electrical goods, construction firms, advertising, restaurants.…read more

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CreditLarge businesses need often need to borrow credit. The amount they borrow depends on: · If they are profitable and likely to remain so · Ability of the business to generate positive cash flow · Strength of the relationship between business and its creditors · Industry/market business operates in…read more